The US Treasury market is undergoing a sharp repricing, with the 10-year yield climbing to its highest level since January 2025.
The selloff reflects a confluence of pressures: an unexpectedly resilient US economy, growing investor anxiety over government debt levels, and renewed hostilities with Iran that have heightened risk premiums.
The Federal Reserve has remained tight-lipped on its future interest-rate trajectory, leaving markets to price in a more hawkish outlook as inflation expectations persist.
The surge in long-term yields is having immediate downstream effects on the real economy.
US mortgage rates have climbed to their highest level since August 2025, triggering a noticeable pullback in homebuyer demand.
Affordability pressures are intensifying for prospective buyers, even as housing inventory remains constrained.